What is the 'Designated Area' for a Bumper Man franchise defined by?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
e demographics substantially change within Franchisee's Designated Area, and Franchisor determines that the Designated Area may no longer be adequately serviced in accordance with the Standards by a single Bumper Man franchisee, Franchisor, in its reasonable business judgment, may: (i) reduce the size of the
- Designated Area, so long as Franchisee's Designated Area contains a minimum of 35 Major Dealerships; or (ii) offer the opportunity for Franchisee to retain the services of a Certified Technician that satisfies Franchisor's then-current criteria for Certified Technicians and is approved by Franchisor in writing within 30 days of Franchisor's Notice of intent to modify the Designated Area. If Franchisor offers the opportunity for Franchisee to retain the services of a Certified Technician, then within 60 days following Franchisor's approval of Franchisee's Certified Technician, Franchisee and the Certified Technician will execute Franchisor's current form of Certified Technician Addendum and the Certified Technician will pay the Certified Technician Fee and complete Initial Training.
- (d) Relocation. Franchisee will not relocate the Bumper Business. However, Franchisee, with Franchisor's prior written consent, may Transfer the Bumper Business to another Person and enter into Franchisor's thencurrent Bumper Man franchise agreement for a new Designated Area provided Franchisee pays to Franchisor a fee equal to 70% of the then-current franchise fee.
- (e) Reserved Rights. Franchisor retains all rights inside and outside the Designated Area except those that are expressly granted to Franchisee in this Agreement. Without limiting Franchisor's and its Affiliate's rights described in this Section 2(e), Franchisor and its Affiliates and any other authorized Person may, among other things:
- (i) Advertise and promote the System within and outside the Designated Area;
- (ii) Operate, and license others to operate, a Bumper Business at any location outside the Designated Area, including locations that are adjacent to the Designated Area;
- (iii) Establish and operate, and license others to establish and operate, any business other than a Bumper Man business, including other automotive repair businesses, under the Marks or under other marks; and
(iv) Establish and operate and license others to establish and operate any auto repair businesses or other businesses that Franchisor or its Affiliates may operate as a result of any acquisition, consolidation or merger.
3. TERM OF FRANCHISE.
- (a) Initial Term.
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, a franchisee must operate their Bumper Business within a 'Designated Area'. The specifics of this area are outlined in Exhibit D of the franchise agreement, which both parties must execute. This exhibit is deemed incorporated into the agreement once signed.
Bumper Man grants the franchisee the right and license to operate within this Designated Area, subject to certain reserved rights held by the franchisor. During the term of the agreement, Bumper Man and its affiliates will not operate or authorize anyone else to operate a Bumper Business within the franchisee's Designated Area, provided the franchisee fully complies with the agreement.
However, this exclusivity is limited. If the demographics within the Designated Area change substantially, Bumper Man can reduce the size of the area if it determines that the area can no longer be adequately serviced by a single franchisee. The FDD also states that the Designated Area must contain a minimum of 35 Major Dealerships.
Bumper Man retains rights inside and outside the Designated Area, except those expressly granted to the franchisee. This includes the right to advertise and promote the Bumper Man system, operate or license others to operate a Bumper Business outside the Designated Area (even adjacent locations), and establish other businesses (including automotive repair) under the Bumper Man marks or other marks.